Hungry Jacks: Marketing Analysis and New Product Recommendation

This report provides a market analysis of Hungry Jacks, a fast food franchisee of Australia. It includes SWOT analysis, target market, new product description, and marketing mix strategies. The report recommends launching pizza as a new product to gain a competitive advantage.

RUNNING HEAD: Hungry Jacks
Hungry Jacks
Introduction to Marketing

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Executive summary
Hungry Jacks is a subsidiary of the Burger King. It is a fast food franchisee of Australia. This
report includes the background of the Hungry Jacks along with the current market and the
product lines. The market environment is analyzed in order to identify the internal and external
environment. The recommendations are given in the form of target market, new product
description and finally devise strategies of the marketing mix variables.
Finally it can be concluded that Hungry Jacks can successfully launch pizza as a new product. It
is quite famous and it is not provided by the competitor companies. It can help company in
gaining competitive advantage.

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Contents
Executive summary.....................................................................................................................................1
Introduction and background to Hungry Jacks............................................................................................3
Marketing environments analysis................................................................................................................3
SWOT analysis........................................................................................................................................3
Discussion...............................................................................................................................................4
Recommendation.........................................................................................................................................6
Target market..........................................................................................................................................6
New product description..........................................................................................................................7
Strategies of the relevant marketing mix variables..................................................................................8
Conclusion and recommendation.................................................................................................................9
References.................................................................................................................................................10

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Introduction and background to Hungry Jacks
Marketing are basically actions of promoting and selling products. It is a process through which
goods and services move from concept to the customers. It keeps the customer satisfied. The
individuals and the organizations obtain what they want through exchanging value with others.
This report includes the market environmental analysis of the Hungry jacks which comprise the
internal and external environment. The report is also going to comprise the target market and the
description of the new market for the Hungry Jacks. The strategies are also devised as the
relevant marketing mix variables. The SWOT analysis provides a framework to the organizations
which help to evaluate business from different angles. The analysis identify the strengthens and
weaknesses of the organization as well as opportunities and threats. The strengths and
weaknesses relates to trademarks, culture and the distribution network. Whereas the
opportunities and threats involves the factors such as regulations, regulations or the technological
changes. These factors help a company in gaining competitive advantage and where it need to
improve.
Hungry jacks is an Australian fast food franchise of Burger King Corporation. It is a subsidiary
of competitive foods Australia. Hungry Jack was first established in 1971. The chain of Burger
King had its origin in USA. When it moved to enlarge its operations into Australia, it was found
that its business name was already trademarked by a food shop in Adelaide. So, Burger King
provided the Australian franchisee and selected the “Hungry Jack” brand name. The first
franchisee of Burger King was established in Innaloo, Perth. The company had 26 stores in three
states after the decade of its establishment. Hungry Jacks operates Burger King and Hungry
Jack’s restaurants in Australia. The company is having more than 420 restaurants and serves to
the major population. It customizes the burgers the way liked by the customers. The company
employs great people and serves great people in the strong communities. It offers burgers with
irresistible smoky and BBQ flavor. The recipes of the company contain balanced flavors and
ingredients. Every meal is freshly prepared at the outlet. This report is going to discuss about
developing a new product and introduce in the target market.

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Marketing environments analysis
SWOT analysis
Strengths
 The products of the Hungry Jack are
better measurable than the competitors
in terms of size, taste, ingredients,
value and money.
 It has Australian image and the
ownership of distinctive brands.
Weaknesses
 The operations are perceived inferior
due to the competition.
 Alleged as number two in the market
place to McDonald’s.
 The company is unable to achieve
share of voice in Australia.
Opportunities
 The burger market remains to be
strong.
 The augmented relaxation time will
lead to the greater use of fast foods.
 The improved elasticity in the working
hours is going to develop business.
Threats
 There is enlarged range of
convenience food for the home use.
The health issues increase causes to
consume healthy food and ignore fast
foods.
 The increased trend towards the
lighter food can diminish the demand
for beef.
 The increasing level of food for home
delivery causes threat to the company.
Discussion
Strengths
Hungry Jack has strong franchise network. Its franchises and outlets are known to be spread in
Australia overall. The company also focuses on the new product development in order to develop
its brand and market. It also defines the long term success of the brand (Thornton, Ball, Lamb,
McCann, Parker and Crawford, 2016). It also have potential to drive customers’ base.

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The company have strong brand image. This state makes easier for the company to open new
restaurants and launch new products. It has advanced market diffusion based on the large number
of restaurants. The company customizes burgers the way wanted by them. This function ensures
uniqueness of the company (Anda and Temmen, 2014).
Hungry Jack is a recognized brand name in the Australia. It has grown into a renowned name
over time and has gained specialty in offering burgers. Its brand name have critical leverages
when it comes to sales and customer reliability. Hungry Jack is among the standard fast food
brand names.
Hungry Jack have heavy emphasis on the digital technology for its management and the business
operations. The company invests heavily on the technology and relies on the computer systems
and network infrastructure comprising POS processing at restaurants.
Weakness
Hungry Jack has narrow portfolio of products. It does not have wide variety of the products. This
factor reduces the profits of the company. If the customers want to have something other than
burger and fries than that person need to visit other outlet. The burgers are also contain high fat
and calories which is actually not good for the health (Thornthwaite, 2017).
Hungry Jack has low brand loyalty and it is difficult to acquire by the company. The frequent
changes happening place makes it difficult for the company to focus on the taste of the
consumers and convenience. The company is also part of highly competitive industry. The
customers find it easy to switch brands due to the less customer loyalty (Brindal, Wilson, Mohr
and Wittert, 2014). The customers easily switch to the competitor companies like McDonalds,
Wendy’s, Starbucks and more.
The company have overreliance on the franchise model. Hungry Jacks is a brand which relies
heavily on the franchisee model. Around 95% of the company’s business is functioned by the
franchisors. The intense competition prevailing in the industry limits the market share growth for
the company.
Opportunities

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Hungry Jacks has important opportunities which is conveyed by the technology. The digital
technology has brought important opportunities in the marketing, sales as well as customers
service. The company can better engage with the customers by utilizing better use of digital
technology and gain loyalty (Suki, Suki and Azman, 2016). The investment in the digital
technology has various benefits as the leading competitors have also made substantial investment
in the technology for enhanced customer service (Fine, 2017).
The company can focus on the growth in other parts of the world. China and India are significant
opportunities for the growth. Hungry Jack can establish franchises in various parts of the world.
The company need to increase its presence worldwide.
Hungry Jacks can innovate its food menu for the customers and can gain benefits from the large
population (Sigala, 2016). The customers have changed their preferences and switched to the
healthier food choices. The company can focus on the food innovation by making available
healthy options. The food menu can be modified into the attractive and healthier food.
Threats
There is high level of competition in the food industry. The company is facing heavy
competition. There are numerous international brands which are opposing for the market share.
There are quite a few brands in the Australia which are competing with the Hungry Jack
(Chandon, Laurent and Valette-Florence, 2016). The heavy rivalry leads to the destruction of the
market share and augmented costs of the marketing.
The food costs are rising higher due to the increased prices of food, commodity and labor. There
is major increase in the costs of raw material and labor which lead to rising operational costs and
reduced profit margins. The customers are concerned for the quality and the company is
pressurized to invest in these things (Fritz, Sohn and Seegebarth, 2017).
Recommendation
Target market
The market segmentation is comprised of buyers in one or more aspects. They can be distributed
by the demographic, geographic, behavioral and the psychographic factors. Hungry Jacks have

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divided customers by region in the geographic factors. As per the demographic factors, the
customers are divided into the males, kids and the family. As behavioral factors, the customers
are divided by speed, economy, occasions and the regular use (Homburg, Vomberg, Enke and
Grimm, 2015). The customers are segmented by the social class and working class in the
psychographic factors.
Hungry Jacks focuses on the target market by serving needs of the particular target group. The
advertising agency can help in suggesting theme to the company for the new product. It can also
experiment with the web marketing campaigns. The young adult are targeted by the company
and they are willing to try new products (Krishna and Schwarz, 2014). They also share the
experience with the friends, family and known. It becomes more of word of mouth strategy.
Hungry Jacks just target on the segment within the total market.
New product description
After analyzing the strengths and weaknesses of the Hungry jacks, it can overcome its failures by
modifying its products. The strengths can be enhance by using more innovative techniques. The
identification of the threats from the SWOT analysis helps company to ignore the factors which
lead back its growth (Verhoef, Kannan and Inman, 2015). The opportunities available in the
market can be availed by making innovations. Hungry jacks can add new product to its menu in
order to retain its target market. The company has already attained popularity by burgers. In this
case, it is easy for the company to retain customers for the pizza. The company can provide
pizzas in both veg and non-veg category. The different pizzas which can be provided by the
Hungry Jacks are Neapolitan, California style, Chicago deep dish, Chicago thin crust, Detroit
style and many more (Mayer, Borges and Simske, 2018).
It can provide more variants in size and shape. Hungry Jacks can also inquire the variety made
available by the competitors. It can enhance and differentiate products. It has been observed that
people like to try new products so unique toppings can be offered by the company. People are
being health conscious now a days so the healthy variants can be included in the pizzas. As,
Hungry Jacks is expert in modifying burgers as per the choice of the customers (Rossimel, Han,
Larsen and Palermo, 2016). Same thing can be applied in the case of the pizzas as well. People
can add toppings as their wish to the pizzas.

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Strategies of the relevant marketing mix variables
The marketing mix variables cover the 4Ps (product, price, place and promotion). It comprises
the pricing, advertising and the distribution strategies.
Product: Hungry jack is a fast food retain chain for burgers and snacks. The main product of the
company in its marketing mix is burger. Now the further expansion can be made by adding
pizzas to the portfolio of the products. It can also be offered in the functional breakfast menu
which is accessible for the restricted time in the morning. It happens to be very prevalent in the
Australian crowd. The toppings of the whopper and tender grill sandwiches can be added to the
pizzas. The economies of scale is focused where large scale operations of the limited product line
is helpful in generating substantial revenue (Kumar and Bosangit, 2014).
Price: The pricing strategy of Hungry Jacks is done in an effective manner. The company
competes with the major food players such as Wendy’s, McDonald’s and more. The idea of
pricing focuses on the product’s prices in such a way that minimizes costa and prices. The prices
are also decided as per the market demand and supply along with the prices of the competitors.
The pizzas can range from the 3 dollars depending on the servings (Wellard, Havill, Hughes,
Watson and Chapman, 2015). The bundle pricing strategy is helpful in earning greater revenues.
The meal can also be provided in the two options such as value meal and kids’ meal. These
meals can be designed in such a way that it attracts customers.
Place: Hungry jacks is one of the largest franchises of the Burger King. The company have
outlets in more than 390 locations across Australia. It also has different modes of provision of
products to the customers. The process of orders and serving is done very quickly (Lerman and
Shefrin, 2015). The vouchers and freebies are also offered on the online delivery in order to
promote sales.
Promotion: Hungry Jacks relies on the advertising to promote itself and generating revenue. The
staff is trained with the selling skills. The possible meal options are also suggested to the
customers which can be desired by them. It also makes use of the promotional campaigns to
offer free food items and inform customers about the nearest stores. The company also associates
with the Australian football league team to encourage people to buy products (Kunaratnam,
Halaki, Wen, Baur and Flood, 2018).

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Conclusion and recommendation
This report has successfully evaluated the internal and external environment of the Hunger Jacks.
Hungry jacks is already specialized in the burger and other snacks. The company has identified
to develop pizza as a new product for the target market which is young adult group. The SWOT
analysis is helpful to the company to launch pizza as the important factors defines the future
strategy of the company in terms of the sale. The four Ps are equally helpful in defining the
scope of new product in the target market. The company is recommended to conduct survey
before introducing new product so that it can understand the taste of the target market and can
develop the taste as per their choice. It is also recommended to investigate the variety of the
pizzas provided by the competitors, so that the Hungry jacks can offer unique pizzas. It can offer
small size pizzas complementary with the large meals in order to promote these.

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